AC Milan are interested in signing Liverpool goalkeeper Pepe Reina but his wages will once again prove a stumbling block.

The Spaniard spent last season on loan in Serie A with Napoli and still has two years to run on his Liverpool contract.

Rafa Benitez was keen to take him back to Italy but the transfer fee of £4million plus wages of around £100,000-a-week are too much for Napoli's budget.

VIDEO Scroll down to watch Pepe Reina back in the thck of it with Liverpool after loan spell

Costly: Pepe Reina is wanted by AC Milan but the Italian giants may not be able to afford the goalkeeper

Milan are looking at loan deals and low-cost signings while selling off the likes of striker Mario Balotelli. The Italy international was linked with Liverpool but Brendan Rodgers has no desire to sign the problematic 23-year-old.

Liverpool are to make their seventh summer signing after striking a two year loan deal with Atletico Madrid for defender Javi Manquillo.

The 20-year-old right-back is due on Merseyside on Monday to undergo a medical. They remain in talks with Sevilla for Alberto Moreno.

Bologna are in talks over a loan deal for Anfield defender Rafael Paez, 19.

Closing in: Liverpool are set to continue their spending spree with the addition of Javier Manquillo (left)